The current artificial boom would have ended in 2018, but Trump’s massive tax cut for corporations, who used their windfall to buy back their stock at all-time highs, and reckless government spending increases directly into the pockets of the military industrial complex, gave the GDP one final burst. Pumping adrenaline into a patient with cancer will also give the patient a momentary appearance of health, but the cancer continues to grow.
The highly educated IYI MBAs running companies like General Electric and GM wasted tens of billions in shareholder funds buying back stock at prices far higher than their current price, putting their companies in danger of bankruptcy. A large proportion of S&P 500 companies have also committed this same outrageously idiotic greedy act. This is exactly what happened from 2005 through 2007 before the last financial collapse. It seems greedy CEOs always put their own personal wealth ahead of their shareholder’s wealth, as their compensation is dependent upon earnings per share.
As the propaganda peddling cheerleaders on financial networks and in the bird cage lining financial press tout stocks at all-time high valuations and parrot bullshit about the “best economy ever”, the average American has seen their real wages stagnant going on a 3rd decade, as their debt levels reach all-time highs. The faux prosperity has been illusory, unless you are in the .01%, a corrupt politician, a government apparatchik, or a Deep State mouthpiece. If I wasn’t such a trusting soul, I might conclude financial crisis is used by the wealthy to get wealthier.
When the fake news networks proclaim the economy can grow for many more years and the stock market will surely hit 30,000 in 2019, remember the simple chart below. It shows the U.S. stock market and recessions going all the way back to 1871. Over the last 147 years, recessions are a fairly regular occurrence, but since 1950 the country has only been in recession 15% of the time……More Here
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